20 Jan 2016
Gold is working hard to stay above $1100/Oz
FXStreet (Mumbai) - Gold bulls are working hard to sustain above USD 1100 levels despite weak economic data in the US and risk aversion in the equity markets.
Key Fib level acting as strong resistance
The metal is struggling to take out 1101.70 (38.2% of Oct low-Dec high). Still, prices appear on track to test 100-DMA located at 1105.62. The weak US housing starts and CPI failed to have any major impact on the USD index and the treasury yields.
Consequently, Gold quickly fell back to trade around 1100 levels after having a hit a daily high of USD 1101.13. The investors now wait to see if the risk aversion worsens across Wall Street or the equity bulls see a relief rally.
Gold Technical Levels
Prices hover around USD 1100/Oz. The immediate resistance is seen at 1101.70 (38.2% of Oct high-Dec low), above which prices could test 1108.55 (Jan 11 high). On the other hand, a failure to sustain above 1100 could send the prices lower to 1087.84 (daily low).
Key Fib level acting as strong resistance
The metal is struggling to take out 1101.70 (38.2% of Oct low-Dec high). Still, prices appear on track to test 100-DMA located at 1105.62. The weak US housing starts and CPI failed to have any major impact on the USD index and the treasury yields.
Consequently, Gold quickly fell back to trade around 1100 levels after having a hit a daily high of USD 1101.13. The investors now wait to see if the risk aversion worsens across Wall Street or the equity bulls see a relief rally.
Gold Technical Levels
Prices hover around USD 1100/Oz. The immediate resistance is seen at 1101.70 (38.2% of Oct high-Dec low), above which prices could test 1108.55 (Jan 11 high). On the other hand, a failure to sustain above 1100 could send the prices lower to 1087.84 (daily low).